Fig16-03_NewsVendor_

Fig16-03_NewsVendor_ - 0.05 0.0 46 0.06 0.11 0.0 47 0.09...

Info iconThis preview shows page 1. Sign up to view the full content.

View Full Document Right Arrow Icon
SINGLE PERIOD INVENTORY MODEL -- NEWSVENDOR PROBLEM PROBLEM: Wall Street Journal Parameter Values: Cost per Item Procured: c = 0.20 0.01 0.02 0.23 Number of demands for probability distribution = 11 Optimal Values: Optimal Order Quantity: Q* = 47 Expected Demand: mu = 49.5 Total Expected Cost: TEC(Q*) = $10.07 Expected Shortages: B(Q*) = 2.66 Probability of Shortage: P[D>Q*] = 0.80 Cumulative Number of Demand Probability Probability shortages 45 0.05
Background image of page 1
This is the end of the preview. Sign up to access the rest of the document.

Unformatted text preview: 0.05 0.0 46 0.06 0.11 0.0 47 0.09 0.20 0.0 48 0.12 0.32 1.0 49 0.17 0.49 2.0 50 0.20 0.69 3.0 51 0.12 0.81 4.0 52 0.08 0.89 5.0 53 0.06 0.95 6.0 54 0.04 0.99 7.0 55 0.01 1.00 8.0 Additional Cost for Each Leftover Item Held: h E = Penalty for Each Item Short: p S = Selling Price per Unit: p R = A B C D E F G 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31...
View Full Document

This note was uploaded on 12/02/2011 for the course QM 670 taught by Professor Dr.keeney during the Fall '11 term at Jefferson College.

Ask a homework question - tutors are online